Greenlane brings desulfurization tech in-house

Greenlane Renewables Inc. is buying Airdep S.R.L.  Founded in 2011, Airdep is a provider of biogas desulfurization and air deodorization products based in Vicenza, Italy.

The acquisition of Airdep will bring technology in-house to remove hydrogen sulfide (H2S) from biogas. Greenlane will integrate it into its portfolio of biogas upgrading systems that produce low-carbon and carbon-negative renewable natural gas (RNG).

It will also add products for sales into existing and new biogas projects globally, independent of the full biogas upgrading system. 

Over the ten years since its founding, Airdep has deployed over 100 H2S treatment systems that use a proprietary liquid reagent media for removal of H2S in biogas. The liquid media is regenerated and recirculated within the process to minimize operating costs. 

The Airdep system offers lower capital and operating costs than competing methods, and is especially compelling for use in higher flow, higher H2S concentration applications. 

In addition to H2S treatment products, sales of which have generated the bulk of Airdep’s revenue, Airdep also offers an extensive line of air deodorization products. 

“Every biogas to RNG project requires H2S treatment. The addition of Airdep’s proven technology to our industry-leading biogas upgrading solutions enables us to bring even more value to customers,” said Brad Douville, president and CEO of Greenlane. 

“Our search for the best commercially available H2S treatment technologies, particularly for higher flow, higher H2S concentration applications, led us to Airdep. We believe the price-performance of its products is compelling and will expand their use across a broader set of applications.  Airdep has demonstrated success through strong revenue growth, but so far that growth has largely been in its Italian home market, which currently accounts for 90% of its revenue.” 

Douville said Greenlane plans to expand the geographic scope of sales of these products to the rest of Europe, to North and South America and to the rest of the world. The acquisition opens opportunities for sales of biogas upgrading systems in Italy, which is a growing RNG market. 

“We are excited to become a part of the Greenlane Renewables organization,” said Andrea Valerio, founder and sole owner of Airdep. “Greenlane’s technical capability and global reach will together allow us to enhance and develop innovative new products for our existing customers and allow us to expand into global markets and serve new customers.”

Valerio will continue his leadership of Airdep as managing director upon the closing of the transaction.

Airdep has a history of generating profits with expected 2021 revenue of approximately $5M (unaudited). Consideration for the acquisition of Airdep S.R.L. will comprised $8 million (€5.5M) in cash payable on closing and $1.4 million (€1.0M) in Greenlane shares. The total maximum consideration for the acquisition is $13 million (€9M).

Closing of the acquisition is anticipated in January, 2022 and is subject to customary closing conditions, including TSX approval in respect of the issuance of share consideration.